Features

A cash advance is the amount of money borrowed against one’s credit limit on their credit card. This sort of advance money can be withdrawn in two ways first through ATM pin, second through a convenience check provided by the credit card organization. There is a higher interest rate applicable on this service than purchases being made through credit card. The interest rate varies between 2-4 percent depending on the credit card company policy. A cash advance provides a golden opportunity to business enterprises which are in their initial stage of development. This kind of loan is safe for businesses as it does not affect the credit ratings. It is a smooth and simple process, lenders check for the financial statements, tax returns and business plan. There are only two main criteria that they need to pass, monthly credit card statements and the time the business has been functional. Cash at hand is quickly available, where other institutions take two to three months to provide the cash; in this case it is available within a week. They emphasize on the business performance instead of the credit score. This a much more pragmatic approach. The month on month profit in the previous year is mainly under scrutiny for applicants. The monthly returns also fluctuates with the business performance, in case the company is doing well that month the return can be higher. Conclusion In today’s dynamic and electrifying economy cash advance is the best solution and resort an upcoming business can decide upon for short term loans. They are considerate, fast and flexible which further boosts the company’s morale to grow and develop further. Individuals should not get addicted to this kind of loan, in which case it will be harmful and not beneficial.

Advantages

The system of interest on this service starts as soon as the person borrows the money. Even before the final bill statement arrives. Financial advisors always insist that the payments to such loans should be made as soon as possible to avoid high interest rates. Most banks offer or grant this kind of loan to people who have a steady income flow and the bank has faith that they will be able to bear the high interest that accrues on it. It is a very expensive and risky affair to resort to this form of loan. Therefore, banks insist that the borrower pays off the complete balance on credit card before they start paying the high interest rates. Generally the borrower cannot take cash advance on the full credit limit that is offered on the credit card. Along with high interest rates that are charged there is also a transaction fees that is attached to this service. This is a loan that is used for car repairs, unexpectedly high electricity bills, extra groceries, medical emergencies. It is also called payday loan. This means the borrower takes the loan and returns the money once he received his next month salary. This kind of loan accrues interest the moment the loan is taken, it starts multiplying from that very moment. Trends In the recent times the companies that offer this loan are mushrooming rapidly and everyone seems to be resorting to it. The main attraction for this kind of loan is that it is a fast process and readily available cash. It is advisable examine three to four companies before making the final choice of the lender. Another important aspect is to ensure the borrower reads all the clause mentioned in the document before signing it and also ask the lender if there are any other hidden clauses for their own safety. Process The most attractive feature is this loan is that there is no paperwork involved in this case. The process is simple and easy, once the borrower applies, he simply needs to answer a few questions online and the financial institution approves the loan. This is the best resort to cover financial emergencies. Most companies give a fourteen day return process, but some companies do have a policy to negotiate on the day the money has to be returned. Advantages